COMMUNITY REINVESTMENT ACT POLICY
STATEMENT OF NEED AND DEFINITION
The Community Reinvestment Act (CRA) was implemented by the Federal Reserve as Regulation BB following the congressional adoption of Title VIII of the Housing and Community Development Act of 1977. Its intent is to encourage all financial institutions to assess and meet the credit needs of their community including low and moderate income areas consistent with the institution's business strategies. CRA does not prohibit any activities nor does it require specific allocation of credit.
The Board of Directors of Beach Business Bank understands and recognizes its responsibilities regarding CRA. By remaining and continuing to conduct business in a safe and sound manner, we feel that we have demonstrated our commitment to our local communities. In addition, the following statement to comply with Regulation BB has been adopted.
Beach Business Bank (the “Bank”) will work diligently to conform to the letter and spirit of the Community Reinvestment Act (“CRA”). The Bank recognizes that this requires an active approach in determining and meeting the communities we service banking needs, including the credit needs of low-and moderate-income areas. The Bank will also strive to maintain accurate processes with which to gather and analyze its data.
Board of Directors
The Board of Directors has appointed a CRA Officer to carry out this policy. The CRA Officer reports directly to the CEO and the Board regarding CRA matters. The Board will be informed of CRA performance through regular reports provided by the CRA Officer and through regulatory examinations. The bank has established a CRA Committee that will report regularly to the Board.
The CRA Officer will administer the Bank’s CRA program as defined within policy guidelines and in conjunction with Regulation BB and amendments thereto.
Public File Review
The public may view and/or receive copies of all materials contained in the bank's Public File maintained at our Corporate Office location in Manhattan Beach, CA.
The CRA Officer will ensure that the Bank meets the requirements of measuring and assessing the Bank’s performance under CRA, including:
- Monitoring the Bank’s loan-to-deposit ratio (net of the ALLL) on a going forward basis to stay abreast of the ratio and to assess whether it is consistent with helping to meet the credit needs of the Bank's assessment area.
- Monitoring the percentage of loans in the Bank's assessment area by reviewing the geo¬coding of the loan portfolio to assess whether such percentages are consistent with helping to meet credit needs of customers within the Bank's assessment area. The goal is to maintain a minimum target level of 75%.
- Monitoring the Bank's record of lending to businesses of different sizes and of different sales levels.
- Taking action, when appropriate, in response to written complaints about the Bank's performance in helping to meet the credit needs of the Bank's assessment area.
- Ensuring that the Bank's assessment area is reasonable and conforms to the CRA requirements.
- The Bank's assessment area currently includes all of Los Angeles County and Orange County.
- Ensuring accurate and up-to-date content of all Public Files.
- Ensuring that the CRA Notice is posted in each branch office.
- Retaining materials relevant to CRA performance.
- Providing the CEO and Board with annual reports of the Bank's CRA performance.
Beach Business Bank has delineated its community based on its size, lending expertise, management, and competition. The delineated community is designated as Los Angeles County and Orange County.
The delineation of this community by Beach Business Bank does not limit our ability to make loans outside the area defined when management considers such loans to be in the best interest of our depositors, stockholders, and our community, and when such loans are consistent with the safe and sound operation of the Bank.
Prior to closing a branch, if applicable, Beach Business Bank will assess the potential impact on its ability to continue offering an appropriate level of services throughout its community. This assessment includes the bank taking into consideration information and ideas obtained from consultations with members of the community to minimize the adverse impact of' the branch closing.
The Bank will notify its customers of a branch closing in advance of such closing as not to cause a hardship on the customers served by that branch, except for reasons beyond our control.
FAIR LENDING NOTICE
THE HOUSING FINANCIAL DISCRIMINATION ACT OF 1977
It is illegal to discriminate in the provision of or in the availability of financial assistance because of the consideration of:
1. Trends, characteristics or conditions in the neighborhood or geography surrounding a housing accommodation, unless the financial institution can demonstrate in the particular case that such consideration is required is an unsafe and unsound business practice; or
2. Race, color, religion, sex, marital status, national origin or ancestry.
It is illegal to consider the racial, ethnic, religious or national origin content of a neighborhood or geographic area surrounding a housing accommodate whether or not such composition is undergoing change, or is expected to undergo change, in appraising a housing accommodation or in determining whether or not, or under what terms and conditions, to provide financial assistance.
These provisions govern financial assistance for the purpose of the purchase, construction, rehabilitation or refinancing of one-to-four-unit family residence occupied by the owner and for the purpose of the home improvement of one- to four-unit family residence.
If you have questions about your rights, or if you wish to file a complaint with the management of this financial institutions or:
|Department of Financial Institutions
300 South Spring Street
Los Angeles, CA 90013-1204
Telephone: (213) 897-2085
||Department of Financial Institutions
45 Fremont Street
San Francisco, CA 94105-2219
HOME MORTGAGE DISCLOSURE ACT (HMDA) NOTICE
The HMDA data about our residential mortgage lending are available for review. The geographic distribution of loans and applications: race, gender, and income of applications of borrowers; and information about loan approvals and denials.
Inquires may be emailed to
[email protected] regarding the locations where HMDA data may be inspected.
Funds Availability Disclosure
US PATRIOT ACT
Important information about account opening procedures.
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means for you – when you open an account, we will ask for your name, address, date of birth, and tax identification number and other information that will allow us to identify you.
We may also ask to see your driver’s license or other identifying document.
CALIFORNIA FORECLOSURE RELIEF LAWS (SB 1137)
If Beach Business Bank is the servicer for your mortgage loan under the new California Foreclosure Relief Laws (SB 1137) the following may apply to you:
If you cannot afford your monthly mortgage payments and wish to avoid foreclosure, you may be eligible for a loan “workout” or modification. We determine eligibility for loan “workouts” on a case-by-case basis. Among other things, we will consider the value of your property and your ability (based on your current income) to make monthly mortgage payments in accordance with the "workout". You may also qualify to refinance your current loan with us or with an alternative mortgage lender of your choosing.
If you are interested in exploring any of the options listed above, you will need to provide us with certain financial information, including the following: Your most recent paystub, list of current monthly expenses, your most recent tax return, bank statements, a current valuation of your property, if available (such as an appraisal).
If you would like to discuss your options to avoiding foreclosure with us, please call the Loan Department of Beach Business Bank at 1-866-862-3878.
If you want advice on buying a home, renting, default, foreclosure avoidance, credit issues or reverse mortgages, HUD sponsors housing counseling agencies throughout the country to provide free or low cost advice. You may contact the Department of Housing and Urban Development (HUD) to find a HUD-certified housing counseling agency by calling HUD’s toll free number of 800-569-4287. Additional information is made available by HUD on its website at www.hud.gov.